Correlation Between Salesforce and Logista
Can any of the company-specific risk be diversified away by investing in both Salesforce and Logista at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Salesforce and Logista into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Logista, you can compare the effects of market volatilities on Salesforce and Logista and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Salesforce with a short position of Logista. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Logista.
Diversification Opportunities for Salesforce and Logista
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and Logista is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Logista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logista and Salesforce is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Salesforce are associated (or correlated) with Logista. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logista has no effect on the direction of Salesforce i.e., Salesforce and Logista go up and down completely randomly.
Pair Corralation between Salesforce and Logista
Considering the 90-day investment horizon Salesforce is expected to generate 2.0 times more return on investment than Logista. However, Salesforce is 2.0 times more volatile than Logista. It trades about 0.1 of its potential returns per unit of risk. Logista is currently generating about 0.08 per unit of risk. If you would invest 13,334 in Salesforce on August 26, 2024 and sell it today you would earn a total of 20,868 from holding Salesforce or generate 156.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.22% |
| Values | Daily Returns |
Salesforce vs. Logista
Performance |
| Timeline |
| Salesforce |
| Logista |
Salesforce and Logista Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Logista
The main advantage of trading using opposite Salesforce and Logista positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Logista can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Logista will offset losses from the drop in Logista's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Logista vs. Global Ship Lease | Logista vs. Scandinavian Tobacco Group | Logista vs. CONAGRA FOODS | Logista vs. IMPERIAL TOBACCO |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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